GTBank Annual Report 2018

OTHER NOTES TO THE FINANCIAL STATEMENTS

20 Other operating expenses

In thousands of Nigerian Naira Group Group Parent Parent
Finance costs Dec-2018 Dec-2017 Dec-2018 Dec-2017
Deposit insurance premium
Other insurance premium 14,360 78,517 2,310 72,811
Auditors' remuneration1 7,892,830 7,935,028 7,725,900 7,784,041
Professional fees and other consulting costs 1,751,863 1,673,326
AMCON expenses3 657,359 518,342
Stationery and postage 791,353 712,254 500,000 475,000
Business travel expenses 1,635,891 1,091,991 719,036 883,654
Advert, promotion and corporate gifts 16,307,643 15,623,675 16,307,643 15,623,675
Repairs and maintenance 1,295,027 1,512,264 904,226 1,089,842
Occupancy costs2 726,784 417,645 421,028
Directors' emoluments 6,421,254 734,489 5,195,047 5,704,650
Outsourcing services 4,810,767 7,016,750 3,503,237 5,029,620
Administrative expense 8,320,232 6,485,929 6,421,101 7,408,200
Communications and sponsorship related expense 585,970 9,539,798 233,900 269,580
Human capital related expenses 8,253,930 6,847,310 7,115,198
Customer service related expenses 4,924,462 879,294 2,365,160 2,447,079
3,844,752 8,589,309 1,648,965 2,523,178
1,803,009 4,736,061 1,580,128 1,626,634
2,272,431 5,883,081 921,604 504,736
70,558,054 1,767,149 55,811,554 60,652,252
1,665,511
76,002,963

1 Auditor’s remuneration represents fees for the interim and final audits of the Group and Bank for the year ended
31 December 2018. The Bank also paid the auditors professional fees in the sum of N31,300,000 for non-audit servic-
es (N25,000,000 for IFRS 9 model certification and N6,300,000 for certification of financial covenant with the Bank’s
foreign lenders) rendered during the year. These services, in the Bank’s opinion, did not impair the independence and
objectivity of the external auditor.

2 This relates to diesel, fuel, and electricity cost as well as ground rates and water cost.

3 The AMCON expense for 2017 has been restated due to retrospective application of the new requirement that
contingent assets should be included in the basis for calculation of AMCON charges.

21 Income tax expense Group Group Parent Parent
Recognised in the Income Statement Dec-2018 Dec-2017 Dec-2018 Dec-2017
(a)
16,186,047 13,239,655 9,043,531 9,027,858
In thousands of Nigerian Naira 1,326,086 957,276 1,326,086 957,276
Current tax expense: 1,902,093 1,902,093
Company income tax 1,862,046 12,271,710 1,862,046
Education Tax 19,414,226 16,058,977 11,847,180
NITDA Levy 2,605,972
2,605,972 228,595 10,239,526 228,595
Prior period’s under provision 10,239,526 14,811,398 14,811,398
Dividend tax (1,827,687)
(1,312,548) (1,326,583) 23,289,521 (1,967,249)
Deferred tax expense: 30,947,176 29,772,387 24,919,924
Origination of temporary differences

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Reconciliation of effective tax rate Dec-2018 Dec-2018 Dec-2017 Dec-2017
Group 215,586,770 197,685,045
30.0% 30.4%
In thousands of Nigerian Naira 64,676,031 0.0% 60,072,606 0.3%
Profit before income tax 44,409 -2.1% 641,240 0.0%
Income tax using the domestic corporation tax rate 2.3% - 2.3%
Effect of tax rates in foreign jurisdictions (4,556,198) 0.6% 0.5%
Tax reliefs/WHT Credits 4,969,893 0.9% 4,606,833 0.9%
Non-deductible expenses 1,326,086 957,276
Education tax levy 1,902,093 -23.0% -26.7%
NITDEF tax levy -0.3% 1,862,046 -0.3%
Tax exempt income (49,690,009) 4.7% (52,848,993) 7.5%
Deductible expenses (570,628) 1.2% 0.1%
Dividend tax 14.4% (558,614) 15.1%
Prior year’s under provision 10,239,526 14,811,398
Total income tax expense 2,605,972
228,595
30,947,175 29,772,387

Reconciliation of effective tax rate
Parent

In thousands of Nigerian Naira Dec-2018 Dec-2018 Dec-2017 Dec-2017
Profit before income tax 190,209,286 183,647,629
Income tax using the domestic corporation tax rate 30.0% 30.4%
Tax reliefs/WHT Credits 57,062,786 -2.4% 55,861,383 0.0%
Non-deductible expenses1 (4,556,198) 2.6% - 2.5%
Education tax levy 0.7% 0.5%
NITDEF tax levy 4,969,893 1.0% 4,606,833 1.0%
Tax exempt income2 1,326,086 -26.1% 957,276
Deductible expenses 1,902,093 -0.3% -28.8%
Dividend tax (49,690,009) 5.4% 1,862,046 -0.3%
(570,628) (52,848,993) 8.1%
10,239,526 0.1%
(558,614) 13.6%
Prior year’s under provision 2,605,972 1.4% 14,811,398

Total income tax expense 23,289,521 12.2% 228,595

24,919,924

1Non-deductible expense include depreciation, stage 1 impairment, non-allowable donations ,etc

2Tax exempt income include FX translation gains,Dividends, interest earned on treasury bills and bonds etc.


Income tax recognised in other comprehensive income

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
Income tax relating to remeasurements of post-employment
benefit obligations (71,679) 251,703 (71,679) 251,703

Income tax relating to Foreign currency translation differences 3,509,522 881,108 - -
for foreign operations (2,103,633) - (2,230,097) -

Income tax relating to Net change in FVOCI financial assets - 2,963,957 - 2,583,614
1,334,210 4,096,768 (2,301,776) 2,835,317
Income tax relating to Net change in fair value of AFS financial
assets

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(b) Current income tax payable

The movement on the current income tax payable account during the year was as follows:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

Balance, beginning of the year 24,147,356 17,928,279 24,009,770 17,819,039
Exchange difference on translation (47,067) 121,717 - -
Charge for the year
Payments during the year 19,414,226 16,058,977 12,271,710 11,847,180
(33,709,152) (25,001,610) (26,615,745) (20,696,442)
Prior year’s under provision
Dividend Tax 2,605,972 228,595 2,605,972 228,595
Balance, end of the year 10,239,526 14,811,398 10,239,526 14,811,398
22,650,861 24,147,356 22,511,233 24,009,770

22. Basic and Diluted earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the company by the
weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares
purchased by the company and held as treasury shares.

The calculation of basic earnings per share for the reporting year was based on the profit atttributable to ordinary
shareholders of N183,851,283,000 and a weighted average number of ordinary shares outstanding of 28,110,827,000
(after adjusting for Treasury shares) for the Group and 29,431,179,000 for the Parent:

Profit attributable to ordinary shareholders

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

Net profit attributable to equity holders of the Company 183,851,283 167,045,340 166,919,765 158,727,705
Net profit used to determine diluted earnings per share 183,851,283 167,045,340 166,919,765 158,727,705

Number of ordinary shares Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of shares

Weighted average number of ordinary shares in issue 28,110,827 28,112,933 29,431,179 29,431,179
Basic earnings per share (expressed in naira per share) 6.54 5.94 5.67 5.39

The Group does not have any dilutive potential ordinary shares. Therefore, Basic EPS and Diluted EPS for continuing op-
erations are the same for the Group.

23. Cash and bank balances Group Group Parent Parent
(a) Dec-2018 Dec-2017 Dec-2018 Dec-2017

In thousands of Nigerian Naira

Cash in hand 64,318,503 67,303,684 43,652,540 42,123,376
Balances held with other banks 208,289,218 224,804,904 75,142,158 113,342,767
Unrestricted balances with central banks 47,484,035
Money market placements 72,552,069 83,203,161 291,334,276 54,379,661
331,989,039 266,662,035 457,613,009 245,450,392
Impairment on Placements 677,148,829 641,973,784 455,296,196
(115,080)
(159,817) - 457,497,929 -
676,989,012 641,973,784 455,296,196

Current 676,989,012 635,011,957 457,497,929 448,334,369
Non-current - 6,961,827 - 6,961,827

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(b) Cash and cash equivalents in statement of cash flows includes:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

Cash and bank balances 676,989,012 641,973,785 457,497,929 455,296,196
Cash and bank balances above three months (62,025,832) (32,798,888) (50,029,687) (28,870,700)
614,963,180 609,174,897 407,468,242 426,425,496

24 Financial assets held for trading Group Group Parent Parent
(a) Dec-2018 Dec-2017 Dec-2018 Dec-2017

In thousands of Nigerian Naira -
-
Financial assets Fair Value through Profit or Loss: 11,314,814 - 8,920,153
Treasury Bills - (see note 24(c) below) 11,314,814 - 8,920,153 4,124,124
12,528,232
Financial assets held for trading: - 6,940,582 - 16,652,356
Trading bonds (see note 24(b) below) - 17,005,079 - 16,652,356
Trading treasury bills (see note 24(c) below) - 23,945,661 -
11,314,814 23,945,661 8,920,153 12,528,232
Total trading assets 4,124,124
10,706,525 15,272,602 8,920,153
Current 608,289 8,673,059 - Parent
Non-current Dec-2017
Parent
(b) Bonds FVPL are analysed below: Group Group Dec-2018 291,320
Dec-2018 Dec-2017 389,307
In thousands of Nigerian Naira - 2,082,272
-
13th FGN Bond Series 2 (12.40%) - 291,320 - 93,183
- 209,143
13th FGN Bond Series 1 (12.50%) - 389,307 - 119,180
- 939,719
14th FGN Bond Series 1 (16.2884%) - 2,082,272 -
- -
11th FGN Bond Series 2 (12.15%) - 93,183
- 4,124,124
11th FGN Bond Series 1 (14.20%) - 209,143

14th FGN Bond Series 2 (16.2499%) - 119,180

FGN Sukuk 16.47 26-SEPT-2024/7Y - 939,719

Non-Nigerian trading bonds - 2,816,458

- 6,940,582

Please note that the corresponding year figures in the table above relate to Trading Bonds.

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(c) Trading treasury bills is analysed below:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

Nigerian treasury bills' maturities: - 12,122 - 12,122
25-January-2018 - 92,768 - 92,768
01-February-2018 - -
08-February-2018 - 1,644 - 1,644
15-February-2018 - 202,006 - 202,006
01-March-2018 - -
08-March-2018 - 735 - 735
15-March-2018 - 9,686 - 9,686
29-March-2018 - 2,826,433 - 2,826,433
05-April-2018 - 215,755 - 215,755
12-April-2018 - 4,906 - 4,906
19-April-2018 - 1,568,097 - 1,568,097
26-April-2018 - 40,246 - 40,246
03-May-2018 - 4,039 - 4,039
10-May-2018 - 105,021 - 105,021
24-May-2018 - 431,788 - 431,788
31-May-2018 - 1,163,996 - 1,163,996
07-June-2018 - 80,627 - 80,627
14-June-2018 - 928,720 - 928,720
21-June-2018 - 3,514 - 3,514
05-July-2018 - 593,890 - 593,890
12-July-2018 - 556,460 - 556,460
19-July-2018 - 307,129 - 307,129
26-July-2018 - 340,636 - 340,636
16-August-2018 - 126,060 - 126,060
23-August-2018 - 108,015 - 108,015
30-August-2018 - 14,255 - 14,255
13-September-2018 - 1,388,767 - 1,388,767
20-September-2018 - 2,167 - 2,167
27-September-2018 - 25,343 - 25,343
04-October-2018 - -
11-October-2018 - - - -
18-October-2018 - 16,868 - 16,868
25-October-2018 - -
01-November-2018 - - - -
15-November-2018 441,730 886,724 441,730 886,724
03-January-2019 73,256 73,256
10-January-2019 58,895 - 58,895 -
17-January-2019 7,106 224,159 7,106 224,159
24-January-2019 245,656 245,656

- -
- -
- -
- -

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OTHER NOTES TO THE FINANCIAL STATEMENTS

31-January-2019 260,210 - 260,210 -

07-February-2019 935,010 - 935,010 -

14-February-2019 749,326 - 749,326 -

21-February-2019 61,372 - 61,372 -

28-February-2019 65,526 - 65,526 -

14-March-2019 65,693 - 65,693 -

21-March-2019 12,458 - 12,458 -

28-March-2019 192,970 - 192,970 -

04-April-2019 97,785 - 97,785 -

18-April-2019 24,027 - 24,027 -

02-May-2019 86,745 - 86,745 -

09-May-2019 825,681 - 825,681 -

16-May-2019 28,543 - 28,543 -

23-May-2019 612 - 612 -

30-May-2019 22,851 - 22,851 -

20-June-2019 64,753 - 64,753 -

27-June-2019 24,560 - 24,560 -

04-July-2019 34,200 - 34,200 -

11-July-2019 43,151 - 43,151 -

18-July-2019 77,538 - 77,538 -

01-August-2019 46,510 - 46,510 -

15-August-2019 210,568 - 210,568 -

29-August-2019 298,350 - 298,350 -

19-September-2019 480,354 - 480,354 -

26-September-2019 86,705 - 86,705 -

03-October-2019 387,287 - 387,287 -

10-October-2019 146,515 - 146,515 -

17-October-2019 905,639 - 905,639 -

24-October-2019 832,229 - 832,229 -

31-October-2019 120,219 - 120,219 -

07-November-2019 460,319 - 460,319 -

21-November-2019 136,277 - 136,277 -

28-November-2019 240,788 - 240,788 -

05-December-2019 166,024 - 166,024 -

12-December-2019 148,371 - 148,371 -

Non-Nigerian treasury bills 2,394,661 4,476,847 - -

11,314,814 17,005,079 8,920,153 12,528,232

Please note that the corresponding year figures in the table above relate to Trading Treasury Bills

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OTHER NOTES TO THE FINANCIAL STATEMENTS Notional Fair Value Fair Value
Contract Amount Assets Liability
25 Derivative financial instruments
56,100,332 3,854,921 (3,752,666)
(a) Group 56,100,332 3,854,921 (3,752,666)
Dec-2018
Notional Fair Value Fair Value
In thousands of Nigerian Naira Contract Amount Assets Liability
Foreign Exchange Derivatives:
30,688,033 638,261 (592,320)
Foreign exchange forward 33,346,156 2,200,817 (2,014,266)
Derivative assets/(liabilities) 64,034,189 2,839,078 (2,606,586)

Group Notional Fair Value Fair Value
Dec-2017 Contract Amount Assets Liability

In thousands of Nigerian Naira 56,100,332 3,854,921 (3,752,666)
Foreign Exchange Derivatives: 56,100,332 3,854,921 (3,752,666)

Foreign exchange forward Notional Fair Value Fair Value
Put and Call options Contract Amount Assets Liability
Derivative assets/(liabilities)
30,688,033 638,261 (592,320)
Parent 33,346,156 2,200,817 (2,014,266)
Dec-2018 64,034,189 2,839,078 (2,606,586)

In thousands of Nigerian Naira
Foreign Exchange Derivatives:

Foreign exchange forward
Derivative assets/(liabilities)

Parent
Dec-2017

In thousands of Nigerian Naira
Foreign Exchange Derivatives:

Foreign exchange forward
Put and Call options
Derivative assets/(liabilities)

(b) All derivatives are settled in less than one year. yet to receive FX. Therefore they are not typical Forward
transactions with the Sovereign. A forward foreign ex-
change contract is an agreement by two counterparties
(c) Foreign exchange derivatives and Options to exchange currencies at a pre-determined rate on some
future date. No funds change hands when a typical for-
The Group enters into forward foreign exchange con- ward foreign exchange contract originates; a funds flow
tracts and currency swaps designated as held for trad- occurs only at the contract’s stated future delivery time.
ing. The Forwards transactions of the Bank are purely Additionally the Group offers its customers derivatives
FX purchases from counterparties on behalf of custom- in connection with their risk management objectives
ers for trade finances. The Bank has delivered Naira but to transfer or reduce market risk (commodity price) for

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OTHER NOTES TO THE FINANCIAL STATEMENTS

their own trading purpose. The hedge transaction with accounting; therefore all gains and losses from changes
the customer is backed by visible trade transaction. The in their fair values are recognised immediately in the in-
foreign currency forward and option contracts are sub- come statement and are reported in ‘Net gains/(losses)
ject to the same risk management policies. The Group’s on financial instruments classified as held for trading’.
foreign exchange derivatives do not qualify for hedge

26 Investment securities Group Group Parent Parent
a. (i) Dec-2018 Dec-2017 Dec-2018 Dec-2017

In thousands of Nigerian Naira 2,620,200 - 2,620,200 -
Investment securities at fair value through Profit or Loss 2,620,200 - 2,620,200 -
Investment securities - Equity (See note 26(a)(ii) below
Total

Investment securities at fair value through OCI 511,504,593 - 440,140,302 -
Debt securities - Treasury bills FVOCI 16,172,674 - 11,083,123 -
Debt securities - Bonds FVOCI 7,608,088 - 7,608,088 -
Debt securities - Corporate bond FVOCI 1,090,596 - 1,081,216 -
Investment securities - Equity (See note 26(a)(ii) below - 459,912,729 -
536,375,951 - (599) -
12 month ECL on Bonds (1,085) - (55,173) -
12 month ECL on Treasury Bills - (227,698) -
12 month ECL on corporate bond (62,213) - 459,629,259 -
Total investment securities FVOCI (227,698)
536,084,955

Available for sale investment securities: - 492,469,374 - 433,094,854
Treasury bills - 15,375,680 - 10,356,140
Bonds - 6,626,983 - 6,626,983
Corporate bond - 3,011,648 - 3,011,648
Equity securities at fair value (See note 26(a)(ii) below - 4,160,706 - 4,151,658
Unquoted equity securities at cost (see note 26(b) below) - 521,644,391 - 457,241,283
- (4,151,658) - (4,151,658)
Specific impairment for equities (see note 26(c) below) - 517,492,733 - 453,089,625
Total available for sale investment securities

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Investment securities at amortised cost: 54,366,750 - 2,008,137 -
- Bonds 44,202,639 -- -
- Treasury bills -- -
- Corporate bond 394,350 - 2,008,137 -
98,963,739 - (4,865) -
12 month ECL on Bonds - Amortised Cost -- -
12 month ECL on Treasury Bills - Amortised Cost (200,041) -- -
12 month ECL on Corp Bond - Amortised Cost (133,745) - 2,003,272 -
Total Investment securities at amortised cost
(10,444)
Held to maturity investment securities: 98,619,509
Bonds
Treasury bills - 38,179,228 - 2,007,253
Corporate bond - 57,931,373 --
Total held to maturity investment securities - 355,997 --
- 96,466,598 - 2,007,253
Total investment securities
637,324,664 613,959,331 464,252,731 455,096,878
Current
Non-current 560,050,680 565,340,377 441,603,763 433,094,854
77,273,984 48,618,954 22,648,968 22,002,024

a. (ii) Equity investment securities is analysed below:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

FVOCI equity instrument - - -
212,342 243,188 212,342
- GIM UEMOA 9,380 700,406 753,185 700,406
2,014,226 2,014,226
- Unified Payment Services Limited1 243,188 -
84,674 84,843 84,674
- Nigeria Automated Clearing Systems 753,185 3,011,648 1,081,216 3,011,648

- Africa Finance Corporation - - 2,620,200 -
- 2,620,200 -
- Afrexim 84,843 3,011,648 3,701,416 3,011,648

1,090,596

FVTPL equity instrument

- Africa Finance Corporation1 2,620,200

2,620,200

3,710,796

1 Unified Payment Services Limited was formerly known as Valucard Nigeria Plc

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(b) Unquoted equity securities at cost relates to the banks investment in SMEEIS and equity investments:

Unquoted equity securities is analysed below: Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira
SMEEIS investment: - 1,080,851 - 1,080,851
- Forrilon Translantic Ltd - 40,000 - 40,000
- Iscare Nigeria Ltd - 40,500 - 40,500
- Ruqayya Integrated Farms - 25,000 - 25,000
- National E-Government Strategy - 10,500 - 10,500
- Central Securities Clearing System - 20,000 - 20,000
- Bookcraft Ltd - -
- 3 Peat Investment Ltd - 1,016,032 - 1,016,032
- Shonga F.H. Nigeria Ltd - 200,000 - 200,000
- Safe Nigeria Ltd - 350,000 - 350,000
- CRC Credit Bureau - 61,111 - 61,111
- Cards Technology Limited - 265,000 - 265,000
- Thisday Events Center - 500,000 - 500,000
- HITV Limited - 500,000 - 500,000
- SCC Algon Ltd - 42,664 - 42,664
Cost of SMIEES investment - -
Less specific impairment for equities - 4,151,658 - 4,151,658
Carrying value of SMIEES investment (4,151,658) (4,151,658)

- -

Other unquoted equity investment:

- GIM UEMOA - 9,048 - -
Cost of other unquoted equity investment - 9,048 - -

Carrying value of other unquoted equity investment - 9,048 - -

Total cost of unquoted equity investment - 4,160,706 - 4,151,658

Total impairment of unquoted equity investment - (4,151,658) - (4,151,658)

Total carrying value of unquoted equity investment - 9,048 - -

Except for African Finance Corporation (AFC) that is held for trading, the Bank has made an irrevocable election to classify all other equity investments as FVOCI
The Bank received dividend income of N224,631,000 (Dec 2017: N3,217,976,000) from the equity investments designated at FVOCI during the year.
Kindly refer to Note 6e for the movement in the value of equity securities at fair value during the year.

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(c) Specific impairment for equities


Movement in specific impairment for equities during the year is as shown below:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

Balance at 1 January - 3,454,978 - 3,454,978

- Charge for the year - 696,680 - 696,680

Balance, end of the year - 4,151,658 - 4,151,658

Specific impairment for equities is further analysed by classification below:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017

Specific impairment on equity securities at cost - 4,151,658 - 4,151,658

- 4,151,658 - 4,151,658

27 Assets pledged as collateral Group Group Parent Parent
(a) Dec-2018 Dec-2017 Dec-2018 Dec-2017

In thousands of Nigerian Naira 485,431 14,453 --
Financial assets held for trading
- Treasury bills 56,298,638 - 56,298,638 -
56,298,638 - 56,298,638 -
Investment Securities - FVOCI (See note (c) below): - (6,899) -
- Treasury bills (6,899) - 56,291,739 -
56,291,739
12 months ECL on Pledged Assets
Total Investment Securities - FVOCI - 58,961,722 - 58,961,722
- 58,961,722 - 58,961,722
Investment Securities - AFS (See note (c) below):
- Treasury bills 56,777,170 58,976,175 56,291,739 58,961,722
Total Investment Securities - AFS
56,751,661 58,976,175 56,291,739 58,961,722
Total Assets Pledged as Collateral 25,509 - --

Current
Non-current

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(b) Assets pledged as collateral for both years relate to (c) Gross Treasury Bills pledged as collateral of
assets pledged to Federal Inland Revenue Service N56,298,638,000 (December 2017: N58,961,722,000)
(FIRS), Nigerian Interbank Settlement System (NIBSS), have been reclassified from treasury bills FVOCI.
Interswitch Nigeria Limited, Unified payment Services
Ltd and Bank Of Industries Limited for collections (d) Assets pledged as collateral are based on prices in an
and other transactions. The Bank is required to active market.
pledge the funds in order to have continuous access
to the collection and settlement platforms, as well
as the underlying transactions. There are no readily
determinable associated liabilities to these pledged
assets.



28. Loans and advances to banks Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira 2,997,306
751,991 48,738 45,110
Loans and advances to banks (39)
Less Impairment: - - (39) -
Stage 1 Loans - - -
Stage 2 Loans (2,625) - -
Stage 3 Loans - (1,630) (2,625) (1,630)
Less collective allowances for impairment 750,361 - 43,480
2,994,642
46,074

Current 2,994,642 750,361 46,074 43,480
Non-current - - - -

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 261

OTHER NOTES TO THE FINANCIAL STATEMENTS

Reconciliation of allowance accounts for losses on loans and advances to banks

Dec - 2018
Group

Impairment on Impairment on
Stage 2 - Life
Collective Impairment Time ECL Not Stage 3 - Non Total
allowance for on Stage 1 -
Total 12 Months ECL Credit Impaired Performing allowance for
impairment
In thousands of Nigerian Naira - Loans impairment
Balance at 31 December 2017 per IAS 39 1,630
1,630 - --

IFRS 9 Reclassifications (1,630) (1,630) 1,630 - - 1,630
IFRS 9 Adjustments - - 5,698
Balance at 1 January 2018 per IFRS 9 - - 7,328 912 3,097 9,707

912 3,097 11,337

Increase/(reversal) in impairment -- (7,289) (912) 5,695 (2,506)
allowances -- - - (6,167) (6,167)

Financial assets derecognised

-- 39 - 2,625 2,664

Dec - 2018 Collective Total Impairment Impairment on Impairment on Total
Parent allowance for on Stage 1 - 12 Stage 2 - Life Time Stage 3 - Non allowance for
Performing
In thousands of Nigerian Naira impairment Months ECL ECL Not Credit Loans impairment
Impaired

Balance at 31 December 2017 per 1,630 1,630 - - - -
IAS 39 (1,630) (1,630) 1,630 - - 1,630
5,698 912 3,097 9,707
IFRS 9 Reclassifications - - 7,328 912 3,097 11,337
- -
IFRS 9 Adjustments (7,289) (912) (472) (8,673)
- -
Balance at 1 January 2018 per IFRS 9 39 - 2,625 2,664
-
Increase/(reversal) in impairment
allowances

-

Dec - 2017 Group Parent
Dec-2017 Dec-2017
In thousands of Nigerian Naira
Collective allowance Total allowance for Collective allowance for Total allowance for
Balance at 1 January impairment impairment
Increase in impairment for impairment impairment
allowances
1,121 1,121 1,121 1,121
509 509 509 509

1,630 1,630 1,630 1,630

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 262

OTHER NOTES TO THE FINANCIAL STATEMENTS

Reconciliation of allowance accounts for losses on loans and advances to banks
Group
2018

Loans Overdrafts Others Total

In thousands of Nigerian Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total
Naira on Stage 1 on Stage 2 - on Stage allowance on Stage 1 on Stage on Stage allowance on Stage on Stage on Stage allowance on Stage on Stage 2 - on Stage allowance
- 12 Months Life Time ECL 3 - Non - 12 Months 3 - Non 1 - 12 2 - Life 3 - Non 1 - 12 Life Time ECL 3 - Non
for 2 - Life Time for Months Time ECL for Months for
ECL Not Credit Performing impairment ECL ECL Not Credit Performing impairment ECL Performing impairment ECL Not Credit Performing impairment
Impaired Loans Loans Not Credit Loans Impaired Loans
Impaired Impaired

Balance at 1 January - - - - 7,328 912 3,097 11,337 - - - - 7,328 912 3,097 11,337
Increase/(reversal) in
impairment allowances - - 1,637 1,637 (7,289) (912) 4,058 (4,143) - - - - (7,289) (912) 5,695 (2,506)
Financial assets
derecognised - - --- - (6,167) (6,167) - ---- - (6,167) (6,167)

Balance, end of year - - 1,637 1,637 39 - 988 1,027 - - - - 39 - 2,625 2,664

Group
Dec-2017

Loans Overdrafts Others Total

Specific Collective Total Specific Collective Total Specific Collective Total Specific Collective Total
allowance for allowance for
allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for
impairment impairment
In thousands of Nigerian Naira impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment

Balance at 1 January - 1,108 1,108 - 13 13 - - - - 1,121 1,121
Increase/ (reversal) in
impairment allowances - 1 1 - 508 508 - - - - 509 509

Balance, end of year - 1,109 1,109 - 521 521 - - - - 1,630 1,630

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 263

OTHER NOTES TO THE FINANCIAL STATEMENTS

Parent Loans Overdrafts Others Total
Dec-2018
Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment on Total Impairment Impairment on Impairment Total
In thousands of on Stage on Stage on Stage allowance on Stage on Stage on Stage allowance on Stage on Stage 2 - Stage 3 - Non allowance on Stage Stage 2 - Life on Stage allowance
Nigerian Naira 1 - 12 2 - Life 3 - Non 1 - 12 2 - Life 3 - Non 1 - 12 Life Time ECL Performing Time ECL Not 3 - Non
Months Time ECL for Months Time ECL for Months Loans for 1 - 12 Months for
ECL Performing impairment ECL Performing impairment ECL Not Credit impairment ECL Credit Impaired Performing impairment
Not Credit Loans Not Credit Loans Impaired Loans
Impaired Impaired

Balance at 1 January - - - - 7,328 912 3,097 11,337 - - - - 7,328 912 3,097 11,337
Increase/(reversal) - - -
in impairment - - 1,637 1,637 (7,289) (912) (2,109) (10,310) - - - - (7,289) (912) (472) (8,673)
allowances
- 1,637 1,637 39 - 988 1,027 - - 39 - 2,625 2,664
Balance, end of year

Parent Loans Overdrafts Others Total
Dec-2017
Specific Collective Total Specific Collective Total Specific Collective Total Specific Collective Total
In thousands of Nigerian Naira
allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for allowance for
Balance at 1 January
Increase/ (reversal) in impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment
impairment allowances
Balance, end of year - 1,108 1,108 - 13 13 - - - - 1,121 1,121

-11 - 508 508 - - - - 509 509

- 1,109 1,109 - 521 521 - - - - 1,630 1,630

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 264

OTHER NOTES TO THE FINANCIAL STATEMENTS Group Parent
Dec-2018 Dec-2018
29 Loans and advances to customers
142,630,600 92,103,624
In thousands of Nigerian Naira 12,301,713 10,711,696
Loans to individuals: 51,966
Loans -
Overdrafts 154,984,279 102,815,320
Others1 (1,916,492)
Gross loans (23,055) (16,169)
Loans (1,939,547) (21,370)
Overdrafts (35,515) (37,539)
Impairment on Stage 1 - 12 Months ECL (20,123)
Loans (55,638) (332)
Overdrafts (3,199,913) (20,116)
Impairment on Stage 2 - Life Time ECL Not Credit Impaired (2,185,578) (20,448)
Loans (5,385,491) (2,817,927)
Overdrafts (5,151,920) (2,183,327)
Impairment on Stage 3 - Non Performing Loans (2,228,756) (5,001,254)
Loans (7,380,676) (2,834,428)
Overdrafts (2,224,813)
Total impairment 137,478,680 (5,059,241)
Loans 10,072,957 89,269,196
Overdrafts 51,966 8,486,883
Others1
Carrying amount 147,603,603 -
97,756,079
Loans to Non-individuals: 997,775,648
Loans 157,566,940 878,193,363
Overdrafts 129,223,296
Others1 48,748,824
Gross loans 1,204,091,412 48,748,824
Loans 1,056,165,483
Overdrafts (4,904,087)
Others1 (560,642) (4,431,267)
Impairment on Stage 1 - 12 Months ECL (217,869) (492,606)
Loans (217,869)
Overdrafts (5,682,598)
Impairment on Stage 2 - Life Time ECL Not Credit Impaired (8,143,678) (5,141,742)
Loans (3,080,889) (8,058,286)
Overdrafts (11,224,567) (3,055,774)
Others1 (31,601,089) (11,114,060)
Impairment on Stage 3 - Non Performing Loans (44,040,086) (26,001,613)
Loans (43,528,812)
Overdrafts (136,316)
Others1 (75,777,491) (136,316)
Total impairment (44,648,854) (69,666,741)
Loans (47,681,617) (38,491,166)
Overdrafts (47,077,192)
Others1 (354,185)
Carrying amount (92,684,656) (354,185)
Total carrying amount (individual and non individual) 953,126,794 (85,922,543)
109,885,323 839,702,197
1Others include Usances and Usances Settlement
48,394,639 82,146,104
Current 1,111,406,756 48,394,639
Non-current 1,259,010,359 970,242,940
1,067,999,019
#EnrichingLives
722,380,821 600,797,993
536,629,538 467,201,026

Guaranty Trust Bank Plc | 2018 Annual Report | 265

OTHER NOTES TO THE FINANCIAL STATEMENTS Group Parent
Dec-2017 Dec-2017
Loans and advances to customers (Cont’d)
153,951,256 99,137,780
In thousands of Nigerian Naira 12,115,194 6,181,249
Loans to individuals:
Loans 166,066,450 105,319,029
Overdrafts (1,219,772) (392,090)
Gross loans -
Loans (89,602) (392,090)
Overdrafts (1,309,374)
Specific impairment (1,427,724) (1,364,333)
Loans (864,176)
Overdrafts (871,039)
Collective impairment (2,298,763) (2,228,509)
Loans (2,647,496) (1,756,423)
Overdrafts
Total impairment (960,641) (864,176)
Loans (3,608,137) (2,620,599)
Overdrafts 151,303,760 97,381,357
Carrying amount 11,154,553
162,458,313 5,317,073
Loans to Non-individuals: 102,698,430
Loans 1,083,739,003
Overdrafts 218,451,039 1,050,931,690
Others1 48,066,648 134,473,702
Gross loans 35,525,974
Loans 1,350,256,690
Overdrafts (39,243,656) 1,220,931,366
Others1 (7,820,027) (37,827,497)
Specific impairment (541,330) (4,195,066)
Loans (47,605,013) -
Overdrafts (9,612,470) (42,022,563)
Others1 (6,543,740) (9,373,753)
Collective impairment (420,350) (5,932,692)
Loans (16,576,560) (329,100)
Overdrafts (48,856,126) (15,635,545)
Others1 (14,363,767) (47,201,250)
Total impairment (961,680) (10,127,758)
Loans (64,181,573) (329,100)
Overdrafts (57,658,108)
Others1 1,034,882,877
Carrying amount 204,087,272 1,003,730,440
Total carrying amount (individual and non individual) 47,104,968 124,345,944
35,196,874
1Others include Usances and Usances Settlement 1,286,075,117
1,448,533,430 1,163,273,258
Current 1,265,971,688
Non-current 679,267,218
769,266,212 569,007,523
696,964,165

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 266

OTHER NOTES TO THE FINANCIAL STATEMENTS

Reconciliation of allowance accounts for losses on loans and advances to INDIVIDUALS
Dec-2018
Group

In thousands of Nigerian Naira Specific Collective Total Impairment Impairment on Impairment on Total allowance
allowance for allowance for on Stage 1 Stage 2 - Life Time Stage 3 - Non for impairment
Balance at 31 December 2017 - 12 Months
per IAS 39 impairment impairment ECL Not Credit Performing Loans
ECL Impaired

1,309,374 2,298,763 3,608,137 - - --

IFRS 9 Reclassifications (1,309,374) (2,298,763) (3,608,137) 2,298,763 - 1,309,374 3,608,137
- - - (537,740) 1,038,782 5,221,928 5,722,970
IFRS 9 Adjustments 1,038,782 6,531,302 9,331,107
- -- 1,761,023 (329,259) (208,777) (497,780)
Balance at 1 January 2018 per
IFRS 9 - -- 40,256 144 (380,487) 1,398,784

Foreign currency translation and - - - 1,779,127
other adjustments

Net impairment allowances due
to origination/derecognition of
financial instruments

Transfer between stages - - - (1,640,859) (654,029) 2,294,888 -

Financial assets derecognised - -- - - (2,851,435) (2,851,435)

Balance, end of year - - - 1,939,547 55,638 5,385,491 7,380,676

Dec-2018 Specific Collective Total Impairment Impairment on Impairment on Total allowance
Parent allowance for allowance for on Stage 1 Stage 2 - Life Time Stage 3 - Non for impairment
- 12 Months
In thousands of Nigerian Naira impairment impairment ECL Not Credit Performing Loans
Balance at 31 December 2017 ECL Impaired
per IAS 39
IFRS 9 Reclassifications 392,090 2,228,509 2,620,599 - - - -
IFRS 9 Adjustments (392,090) (2,228,509) (2,620,599) 2,228,509 - 392,090 2,620,599
Balance at 1 January 2018 per (558,582) 674,333 4,950,973 5,066,724
IFRS 9 - - -
Net impairment allowances due
to origination/derecognition of - - - 1,669,927 674,333 5,343,063 7,687,323
financial instruments
Transfer between stages - - - 8,471 144 212,070 220,685
Financial assets derecognised
Balance, end of year - - - (1,640,859) (654,029) 2,294,888 -

- -- - - (2,848,767) (2,848,767)

- - - 37,539 20,448 5,001,254 5,059,241

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 267

OTHER NOTES TO THE FINANCIAL STATEMENTS

Dec-2017 Specific Group Total Specific Parent
allowance for 2017 2017
In thousands of Nigerian allowance for allowance for Total allowance
Naira impairment Collective Collective for impairment
allowance for impairment impairment allowance for

impairment impairment

Balance at 1 January 1,085,240 2,135,259 3,220,499 2,500 2,078,390 2,080,890

Foreign currency translation 36,782 130,505 167,287 - - -
and other adjustments
937,850 32,999 970,849 954,760 150,119 1,104,879
Increase in impairment (750,498) - (750,498) (565,170) - (565,170)
allowances 1,309,374 3,608,137 2,620,599
2,298,763 392,090 2,228,509
Write offs

Balance, end of year

Reconciliation of allowance accounts for losses on Loans to NON - INDIVIDUALS
Dec-2018
Group

In thousands of Nigerian Naira Specific Collective Total Impairment Impairment Impairment on Total allowance
allowance allowance allowance on Stage 1 on Stage 2 - Stage 3 - Non for impairment
- 12 Months Life Time ECL Performing
for for for Loans
impairment impairment impairment ECL Not Credit
Impaired

Balance at 31 December 2017 47,605,013 16,576,560 64,181,573 - - - -
per IAS 39 (47,605,013) (16,576,560) (64,181,573) 16,576,560 - 47,605,013 64,181,573
57,953,409 78,794,279 138,983,174
IFRS 9 Reclassifications - - - 2,235,486
57,953,409 126,399,292 203,164,747
IFRS 9 Adjustments -- - 18,812,046
(596,953) (935,097) (1,829,229)
Balance at 1 January 2018 per -- - (297,179)
IFRS 9 483,120 3,017,177 3,510,207
-- - 9,910 (46,615,009) 59,457,190 -
Foreign currency translation -- - (12,842,181) (112,161,071)
and other adjustments -- -- - 75,777,491 (112,161,071)
-- - 5,682,596 11,224,567 92,684,654
Net impairment allowances due
to origination/derecognition of
financial instruments

Transfer between stages

Financial assets derecognised

Balance, end of year

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 268

OTHER NOTES TO THE FINANCIAL STATEMENTS

Dec-2018 Specific Collective Total Impairment Impairment Impairment on Total allowance
Parent allowance allowance allowance on Stage 1 on Stage2 - Stage 3 - Non for impairment
- 12 Months Life Time ECL Performing
In thousands of Nigerian Naira for for for Loans
impairment impairment impairment ECL Not Credit
Impaired

Balance at 31 December 2017 42,022,563 15,635,545 57,658,108 - - - -
per IAS 39 (42,022,563) (15,635,545) (57,658,108) 15,635,545 - 42,022,563 57,658,108
57,245,949 77,098,966 136,392,818
IFRS 9 Reclassifications - - - 2,047,903
57,245,949 119,121,529 194,050,926
IFRS 9 Adjustments -- - 17,683,448
- 280,456 280,456
Balance at 1 January 2018 per -- --
IFRS 9 483,120 508,698 1,292,293
-- - 300,475 (46,615,009) 59,457,190 -
Foreign currency translation -- - (12,842,181) (109,701,132)
and other adjustments -- -- - 69,666,741 (109,701,132)
-- - 5,141,742 11,114,060 85,922,543
Net impairment allowances due
to origination/derecognition of
financial instruments

Transfer between stages

Financial assets derecognised

Balance, end of year

Dec-2017 Specific Group Total allowance Specific Parent Total allowance
allowance for Dec - 17 for impairment allowance for Dec - 17 for impairment
In thousands of Nigerian Naira
impairment Collective impairment Collective
allowance for allowance for

impairment impairment

Balance at 1 January 19,891,322 57,536,016 77,427,338 15,871,130 55,947,744 71,818,874

Foreign currency translation 305,576 (142,038) 163,538 71 - 71
and other adjustments
30,897,880 (18,852,382) 12,045,498 28,373,246 (18,347,163) 10,026,083
Increase/ (reversal) in 21,965,036 (21,965,036) - 21,965,036 (21,965,036) -
impairment allowances (25,454,801) (24,186,920)
47,605,013 - (25,454,801) 42,022,563 - (24,186,920)
Reclassifications 16,576,560 64,181,573 15,635,545 57,658,108

Write offs

Balance, end of year

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 269

OTHER NOTES TO THE FINANCIAL STATEMENTS

Reconciliation of allowance accounts for losses on loans and advances to INDIVIDUALS
Group
Dec-2018

Loans Overdrafts Others Total

In thousands of Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total
Nigerian Naira on Stage 1 on Stage 2 - on Stage allowance on Stage 1 on Stage 2 - on Stage allowance for on Stage 1 on Stage 2 - on Stage allowance on Stage 1 on Stage 2 - on Stage allowance for
- 12 Months Life Time ECL 3 - Non - 12 Months Life Time ECL 3 - Non - 12 Months Life Time ECL 3 - Non - 12 Months Life Time ECL 3 - Non
for impairment for impairment
ECL Not Credit Performing impairment ECL Not Credit Performing ECL Not Credit Performing impairment ECL Not Credit Performing
Impaired Loans Impaired Loans Impaired Loans Impaired Loans

Balance at 1

January 1,694,921 260,207 1,104,053 3,059,181 66,102 778,575 5,427,249 6,271,926 - - - - 1,761,023 1,038,782 6,531,302 9,331,107

Foreign currency

translation and

other adjustments 39,777 (210,174) (124,050) (294,447) 479 (119,085) (84,727) (203,333) - - - - 40,256 (329,259) (208,777) (497,780)

Increase/ (decrease)

in impairment

allowances due to

derecognition 1,822,653 639,511 (73,393) 2,388,771 (43,526) (639,367) (307,094) (989,987) - - - - 1,779,127 144 (380,487) 1,398,784

Transfer between

stages (1,640,859) (654,029) 2,294,888 - - - - -- - - - (1,640,859) (654,029) 2,294,888 -

Financial assets - - (1,585) (1,585) - - (2,849,850) (2,849,850) - - --- - (2,851,435) (2,851,435)
derecognised

Balance, end of 1,916,492 35,515 3,199,913 5,151,920 23,055 20,123 2,185,578 2,228,756 - - - - 1,939,547 55,638 5,385,491 7,380,676
year

Group
Dec-2017

Loans Overdrafts Others Total

Specific Collective Total Specific Collective Total Specific Collective Total Specific Collective Total
allowance for allowance allowance allowance allowance allowance allowance allowance allowance allowance
allowance for allowance for
impairment for for for for for for for for for
In thousands of Nigerian Naira impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment

Balance at 1 January 1,048,642 1,274,077 2,322,719 36,559 861,180 897,739 39 2 41 1,085,240 2,135,259 3,220,499
Foreign currency translation -
and other adjustments 50,880 81,055 131,935 (14,098) 49,450 35,352 - - 36,782 130,505 167,287
Increase/ (reversal) in 1,016
impairment allowances 240,710 72,592 313,302 696,124 (39,591) 656,533 (1,055) (2) 1,014 937,850 32,999 970,849
Write offs (120,460) - (120,460) (628,983) - (628,983) - (1,055) (750,498) - (750,498)
-
Balance, end of year 1,219,772 1,427,724 2,647,496 89,602 871,039 960,641 - - 1,309,374 2,298,763 3,608,137

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 270

OTHER NOTES TO THE FINANCIAL STATEMENTS

Parent Loans Overdrafts Others Total
Dec-2018
Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total
In thousands of on Stage 1 on Stage 2 - on Stage allowance on Stage 1 on Stage 2 - on Stage allowance for on Stage 1 on Stage on Stage allowance on Stage 1 on Stage on Stage allowance for
Nigerian Naira - 12 Months Life Time ECL 3 - Non - 12 Months Life Time ECL 3 - Non - 12 Months 3 - Non - 12 Months 3 - Non
for impairment 2 - Life Time for 2 - Life Time impairment
ECL Not Credit Performing impairment ECL Not Credit Performing ECL ECL Not Credit Performing impairment ECL ECL Not Credit Performing
Impaired Loans Impaired Loans Loans Loans
Impaired Impaired

Balance at 1 1,604,908 27,571 398,034 2,030,513 65,019 646,762 4,945,029 5,656,810 - - - - 1,669,927 674,333 5,343,063 7,687,323
January
52,120 626,790 125,005 803,915 (43,649) (626,646) 87,065 (583,230) - - - - 8,471 144 212,070 220,685
Increase/ (1,640,859) - -
(decrease) in (654,029) 2,294,888 - - --- - - - - (1,640,859) (654,029) 2,294,888 -
impairment -
allowances due to - -- - (2,848,767) (2,848,767) - -- - - (2,848,767) (2,848,767)
derecognition

Transfer between
stages

Financial assets
derecognised

Balance, end 16,169 332 2,817,927 2,834,428 21,370 20,116 2,183,327 2,224,813 - - - - 37,539 20,448 5,001,254 5,059,241
of year

Parent Loans Overdrafts Others Total
Dec-2017
Specific Collective Total Specific Collective Total Specific Collective Total Specific Collective Total
In thousands of Nigerian Naira allowance for allowance allowance allowance allowance allowance allowance allowance allowance allowance
allowance for allowance for
impairment for for for for for for for for for
impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment impairment

Balance at 1 January 1,450 1,219,075 1,220,525 1,050 859,315 860,365 - - - 2,500 2,078,390 2,080,890

Increase/ (reversal) in 390,640 145,258 535,898 564,120 4,861 568,981 - - - 954,760 150,119 1,104,879
impairment allowances
- - - (565,170) - (565,170) - - - (565,170) - (565,170)
Write offs

Balance, end of year 392,090 1,364,333 1,756,423 - 864,176 864,176 - - - 392,090 2,228,509 2,620,599

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 271

OTHER NOTES TO THE FINANCIAL STATEMENTS

Reconciliation of allowance accounts for losses on Loans to NON - INDIVIDUAL
Group
Dec-2018

Loans Overdrafts Others Total

In thousands of Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total
Nigerian Naira on Stage 1 on Stage on Stage allowance for on Stage on Stage on Stage allowance for on Stage on Stage on Stage allowance on Stage 1 on Stage on Stage allowance for
- 12 Months 3 - Non 1 - 12 3 - Non 1 - 12 2 - Life 3 - Non - 12 Months 2 - Life 3 - Non
2 - Life Time impairment Months 2 - Life Time impairment Months Time ECL for Time ECL impairment
ECL ECL Not Credit Performing ECL ECL Not Credit Performing ECL Performing impairment ECL Performing
Loans Loans Not Credit Loans Not Credit Loans
Impaired Impaired Impaired Impaired

Balance at 1 January 12,629,270 44,905,258 67,681,222 125,215,750 6,033,702 12,781,333 58,704,482 77,519,517 149,074 266,818 13,588 429,480 18,812,046 57,953,409 126,399,292 203,164,747

Foreign currency (256,465) (433,103) (226,459) (916,027) (29,320) (163,850) (706,451) (899,621) (11,394) - (2,187) (13,581) (297,179) (596,953) (935,097) (1,829,229)
translation and other
adjustments 55,779 92,476 4,226,731 4,374,986 (13,991) 545,397 (1,338,895) (807,489) (31,876) (154,753) 129,341 (57,288) 9,912 483,120 3,017,177 3,510,209
(7,524,497) (36,420,953) (39,054,550) 112,065 (112,065) -
Increase/ (decrease) (83,000,000) (5,429,749) (10,081,991) 98,511,740 83,000,000 - (12,842,181) (46,615,009) 59,457,190 -
in impairment - - (1,025,855) - - (4,426)
allowances due to 4,904,087 8,143,678 31,601,089 (1,025,855) - - (111,130,790) (111,130,790) 217,869 - 136,316 (4,426) - - (112,161,071) (112,161,071)
derecognition 44,648,854 560,642 354,185 5,682,598
3,080,889 44,040,086 47,681,617 11,224,567 75,777,491 92,684,656
Transfer between
stages

Financial assets
derecognised

Balance, end of year

Group Loans Overdrafts Others Total
Dec-2017
Specific Collective Specific Collective Total Specific Collective Specific Collective Total
In thousands of Nigerian Naira allowance for allowance allowance allowance allowance allowance allowance for allowance for
Total allowance Total allowance allowance for allowance for
impairment for for impairment for for for for impairment for impairment impairment
impairment impairment impairment impairment impairment impairment impairment

Balance at 1 January 16,387,454 11,906,458 28,293,912 3,244,652 5,061,009 8,305,661 259,216 40,568,549 40,827,765 19,891,322 57,536,016 77,427,338

Foreign currency translation 284,670 (88,217) 196,453 20,906 (53,821) (32,915) -- - 305,576 (142,038) 163,538
and other adjustments
25,974,534 (2,205,771) 23,768,763 4,641,239 1,536,552 6,177,791 282,107 (18,183,163) (17,901,056) 30,897,880 (18,852,382) 12,045,498
Increase/(reversal) in 21,965,036 - - - - (21,965,036) (21,965,036) 21,965,036 (21,965,036) -
impairment allowances 21,965,036 - (25,368,038) - 7 (25,454,801)
48,856,126 (86,770) (86,770) - 7 47,605,013 - (25,454,801)
Reclassifications (25,368,038) - 7,820,027 6,543,740 14,363,767 541,330 420,350 961,680 16,576,560 64,181,573

Write offs 39,243,656 9,612,470

Balance, end of year

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Parent
Dec-2018

Loans Overdrafts Others Total

In thousands of Nigerian Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total Impairment Impairment Impairment Total
Naira on Stage on Stage 2 - on Stage allowance on Stage on Stage on Stage allowance for on Stage on Stage 2 - on Stage allowance on Stage 1 on Stage on Stage allowance for
1 - 12 Life Time ECL 3 - Non 1 - 12 2 - Life 3 - Non 1 - 12 Life Time ECL 3 - Non - 12 Months 2 - Life 3 - Non
Months for Months Time ECL impairment Months for Time ECL impairment
ECL Not Credit Performing impairment ECL Performing ECL Not Credit Performing impairment ECL Performing
Impaired Loans Not Credit Loans Impaired Loans Not Credit Loans
Impaired Impaired

Balance at 1 January 11,655,289 44,391,980 64,646,215 120,693,484 5,922,355 12,587,151 54,474,818 72,984,324 105,804 266,818 496 373,118 17,683,448 57,245,949 119,121,529 194,050,926
- - - - - - 280,456 280,456
Foreign currency translation - - 280,456 280,456 - - - -
and other adjustments
300,475 87,259 129,492 517,226 - 550,614 243,386 794,000 - (154,753) 135,820 (18,933) 300,475 483,120 508,698 1,292,293
Increase/ (decrease) in (7,524,497) (36,420,953) (39,054,550) (83,000,000) (5,429,749) (10,081,991) 98,511,740 83,000,000 112,065 (112,065) - - (12,842,181) (46,615,009) 59,457,190 -
impairment allowances due (109,701,132) (109,701,132) - - (109,701,132)
to derecognition - - - - - - 43,528,812 47,077,192 - - - - 69,666,741 (109,701,132)
4,431,267 8,058,286 26,001,613 38,491,166 492,606 3,055,774 217,869 - 136,316 354,185 5,141,742 11,114,060 85,922,543
Transfer between stages

Financial assets derecognised

Balance, end of year

Parent Loans Overdrafts Others Total
Dec-2017
Specific Collective Total Specific Collective Total Specific Collective Total Specific Collective Total
In thousands of Nigerian Naira allowance for allowance allowance allowance for allowance allowance for allowance allowance for allowance for allowance for allowance for allowance

impairment for for impairment for impairment for impairment impairment impairment impairment for
impairment impairment impairment impairment impairment

Balance at 1 January 14,865,641 11,305,230 26,170,871 1,005,489 4,176,375 5,181,864 - 40,466,139 40,466,139 15,871,130 55,947,744 71,818,874

Foreign currency translation and 71 - 71 - - - - -- 71 - 71
other adjustments
25,183,669 (1,931,477) 23,252,192 3,189,577 1,756,317 4,945,894 - (18,172,003) (18,172,003) 28,373,246 (18,347,163) 10,026,083
Increase/(reversal) in impairment 21,965,036 - 21,965,036 - - - 21,965,036 (21,965,036) -
allowances (24,186,920) - (24,186,920) - - - - (21,965,036) (21,965,036) (24,186,920)
37,827,497 47,201,250 42,022,563 - (24,186,920)
Reclassifications 9,373,753 4,195,066 5,932,692 10,127,758 - -- 15,635,545 57,658,108

Write offs - 329,100 329,100

Balance, end of year

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OTHER NOTES TO THE FINANCIAL STATEMENTS

30 Investment in subsidiaries

(a) Investment in subsidiaries comprises:

GTB Gambia Parent Parent Parent Parent
GTB Sierra Leone Dec-2018 Dec-2017 Dec-2018 Dec-2017
GTB Ghana % ownership % ownership
GTB UK Limited N'000 N'000
GTB Liberia Limited 77.81 77.81 574,278 574,278
GTB Cote D'Ivoire Limited 594,109 594,109
GTB Kenya Limited 83.74 84.24 18,142,127 9,042,739
GTB Tanzania 9,597,924 9,597,924
98.32 97.97 1,947,264 1,947,264
5,077,458 5,077,458
100.00 100.00 17,131,482 17,131,482
2,749,390 2,241,750
99.43 99.43 55,814,032 46,207,004

100.00 100.00 - -
55,814,032 46,207,004
70.00 70.00

70.00 70.00

Current
Non-current

(a) (i) The movement in investment in subsidiaries during the year is as follows:

In thousands of Nigerian Naira Parent Parent
Balance, beginning of the Year Dec-2018 Dec-2017
Additions during the Year 46,207,004 43,968,474
Transferred to assets classified as held for sale and discontinued operations 9,607,028 2,241,750

Balance, end of the Year - (3,220)

55,814,032 46,207,004

( a) (ii) Additions during the year relates to:
- Additional investments of N9,099,388,000 in GTB Ghana
- The Parent equally made an additional investment of N507,640,000 in GTB Tanzania respectively. Non-controlling
interests in the entity also increased by N217,560,000.

Please refer to Note 46 for more information on the Group structure


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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed results of consolidated entities

(b) Condensed results of the consolidated entities as at 31 December 2018, are as follows:

F ull yea r profit and loss
Dec-2018

Staff

Investment GTB GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank
Ghana Sierra Leone Liberia GT Bank UK Kenya Tanzania
In thousands of Nigerian Naira Trust Finance B.V. Gambia Cote D'Ivoire 122,184
24,093,031 7,500,629 12,618,143 (784,080)
Operating income 2,971,759 - (8,533,659) (3,091,315) 5,453,321 6,626,197 3,763,755 2,090,208 (8,130,160)
(3,009,692) (3,374)
Operating expenses (3,251,871) - 964,987 (338,955) (2,768,997) (5,190,124) (2,600,834) (1,617,036) (665,270)
16,524,359 4,070,359 1,478,291
Loan impairment charges -- (4,858,722) (1,210,251) (941,427) (1,297) (67,551) (6,167) (589,458) -
11,665,637 2,860,108 (665,270)
Profit before tax (280,112) - 1,742,897 1,434,776 1,095,370 467,005 888,833
-
Taxation -- (433,150) (271,106) (294,967) -
(665,270)
Profit after tax (280,112) - 1,309,747 1,163,670 800,403 467,005
Other comprehensive income
net of tax -- -- - -- - 134,819
Total comprehensive
income for the year (280,112) - 11,665,637 2,860,108 1,309,747 1,163,670 800,403 467,005 1,023,652

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed financial position Staff Invest- GTB GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank
Dec-2018 Liberia Kenya Tanzania
ment Trust Finance B.V. Ghana Sierra Leone GT Bank UK Gambia Cote D'Ivoire
In thousands of Nigerian Naira 24,035,996 171,330
Assets 195,861 8,611 61,983,571 16,428,420 6,353,309 141,716,358 14,729,744 2,240,276 - 704,226
Cash and bank balances - - - - - 993,658 - 1,250,684 340,860
Loans and advances to banks - 5,498,482 69,417,339
Loans and advances to customers - 2,591,823 31,614,790 16,906,300 27,841,700 35,016,568 5,092,777 - -
Financial assets held for trading - 2,394,661 - - - - -
Investment securities:
– Fair Value through other comprehensive 45,700,820 - - - - 34,274,921 21,278,347 9,380 20,893,047 -
Income - - 65,158,703 7,902,263 437,081 - - 12,073,606 10,065,326 979,256
– Held at amortised cost - - - -
Assets pledged as collateral - - - - - 25,509 459,922 -
Other assets - - 5,033,424 412,812 3,083,712 460,879 456,037 776,583 3,288,144 246,803
Property and equipment - - 3,574,734 1,177,818 2,331,227 784,487 2,647,558 1,177,808 2,370,291 1,461,461
Intangible assets - - 1,453,357 330,421
Deferred tax assets 2,600,434 147,488 - 63,565 - 107,104 59,094 1,684,921
Total assets 45,896,681 90,781 - - 394,118 - - 133,668,343 -
42,827,613 213,640,989 4,234,357
169,998,152 40,110,594 44,311,567 23,111,422

Financed by: - - 1 - 1,076,370 125,514,278 - 6,275 3,786,638 -
Deposits from banks - - 123,886,741 31,966,306 27,750,526 69,827,785 36,699,364 15,787,505 101,211,088 1,004,994
Deposits from customers - - -
Current income tax liabilities - - (81,418) 129,181 449,354 - 38,136 - (395,614) -
Deferred tax liabilities 9,869,968 - 138,228 16,647 - 1,813,807 139,951 - 439,132 -
Other liabilities 717,337 - 2,395,285 - 2,138,766 828,585 88,108
Other borrowed funds 10,587,305 - 450,290 991,109 1,131,555 - 1,436,017 -
Total liabilities 35,309,376 2,600,434 126,789,127 - 755,292 197,155,870 - 16,622,365 - 1,093,102
Equity and reserve 45,896,681 2,600,434 43,209,025 16,485,119 39,016,217 6,489,057 3,141,255
169,998,152 33,103,243 31,163,097 23,111,422 106,477,261 4,234,357
9,724,370 8,947,497 213,640,989 5,295,350 27,191,082
44,311,567
42,827,613 40,110,594 133,668,343

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed cash flow Staff GTB Finance GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank
Dec-2018 Investment B.V. Liberia GT Bank UK Kenya Tanzania
Ghana Sierra Leone Gambia Cote D'Ivoire
In thousands of Nigerian Naira Trust
Net cash flow:
(47,291,431) - 33,932,631 2,854,627 (2,050,299) 8,774,803 10,400,338 4,208,201 3,097,881 (136,265)
- from operating activities 48,051,131 - (3,699,927) 163,546 2,065,883 (4,848,193) (4,209,603) (5,041,461) 2,539,712 (881,096)
- from investing activities (711,168) - (1,906,543) (36,188) (511,956) (7,243,277)
- from financing activities 48,532 - 28,326,161 (496,372) (4,595) (2,896) - (1,605,684) -
Increase in cash and cash equivalents 147,329 7,948 33,957,550 2,981,985 6,459,540 3,922,015 6,187,839 (833,260) 23,970,384 (1,017,361)
Cash balance, beginning of year - 663 13,795,410 390,143 135,385,632 8,240,527 3,007,428 2,046,300
Effect of exchange difference 195,861 8,611 (254,945) 6,353,311 2,408,710 24,411,000 1,138,938
Cash balance, end of year 62,028,766 (348,974) 141,716,357 301,378 66,107 49,753
16,428,421 14,729,744 2,240,275
171,330

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed results of the consolidated entities of the GT Bank Kenya Group as at 31 December 2018, are as follows:


Profit and loss
Dec-2018

In thousands of Nigerian Naira GT Bank Kenya GT Bank Uganda GT Bank Rwanda
Operating income 5,307,605 1,624,849 3,593,314
Operating expenses
Loan impairment charges (4,121,096) (1,978,982) (2,405,085)
Profit before tax (139,093) (238,552) (539,672)
1,047,416 (592,685) 648,557
Taxation
(259,291) (330,167) -
Profit after tax
788,125 (922,852) 648,557

Condensed financial position GT Bank Kenya GT Bank Uganda GT Bank Rwanda
Dec-2018
5,226,568 8,299,488 10,509,940
In thousands of Nigerian Naira 44,697,639 7,036,414 17,683,286
Assets
Cash and bank balances 20,893,047 - -
Loans and advances to customers 3,117,203 2,809,808 4,138,315
-
Investment securities: 459,922 -
– Fair Value through other comprehensive Income 770,318 410,953 2,106,873
11,910,240
– Held at amortised cost - -
875,596 355,462 1,139,233
Assets pledged as collateral 637,420 319,601
1,028,863 656,058 419,385
Other assets 89,156,894 20,347,706 -
Investment in subsidiaries
2,516,889 35,997,032
Property and equipment 56,618,089
1,269,749 -
Intangible assets 263,575 14,860,691 29,732,308
Deferred tax assets 386,300
Total assets 59,784,853 - 175,557
29,372,041 603,314 446,403
Financed by: 89,156,894 16,733,754 30,354,268
Deposits from banks 3,613,952 5,642,764
Deposits from customers 20,347,706 35,997,032
Deferred tax liabilities
Other liabilities
Total liabilities
Equity and reserve

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed results of the consolidated entities as at 31 December 2017, are as follows:
Dec-2017

In thousands of Nigerian Naira Staff GTB Finance GT Bank GT Bank GT Bank GT Bank UK GT Bank GT Bank Cote GT Bank GT Bank
Operating income Investment B.V. Ghana Sierra Leone Liberia 4,650,170 Gambia D'Ivoire Kenya Tanzania
Operating expenses 4,161,973
Loan impairment charges Trust 266,967 16,819,395 5,565,042 5,239,695 (3,724,105) (2,535,955) 1,503,588 9,908,873 14,425
Profit before tax (266,967) (7,615,921) (2,837,446) (2,574,449) - (1,359,089) (8,108,819) (355,943)
Taxation 2,466,265 2,628
Profit after tax - 123,400 188,322 (895,773) 926,065 1,628,646 - (753,084) -
Total comprehensive income for the year (2,198,700) - 9,326,874 2,915,918 1,769,473 (1,656) (488,596) 144,499 1,046,970 (341,518)
- (2,875,754) (874,775) (415,480) 1,140,050 (196,201)
- - 6,451,120 2,041,143 1,353,993 924,409 1,140,050 - -
- 6,451,120 2,041,143 1,353,993 924,409 144,499 850,769 (341,518)
267,565 144,499 850,769 (341,518)

-

267,565

267,565

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed results of the consolidated entities as at 31 December 2017, are as follows:
Dec-2017

Staff Investment GTB Finance GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank
Trust B.V. Liberia Kenya Tanzania
In thousands of Nigerian Naira Ghana Sierra Leone GT Bank UK Gambia Cote D'Ivoire
Assets 1,138,938
Cash and bank balances 147,329 7,948 33,957,550 13,795,410 6,459,540 135,385,632 8,240,527 3,007,428 23,970,384 -
Loans and advances to banks - - - - - 706,881 - - - -
Loans and advances to customers - -
Financial assets held for trading - 2,392,230 29,743,423 13,869,985 24,565,351 37,988,167 5,004,774 6,923,602 65,895,071
Investment securities: - 7,293,305 - - - - - - -
– Available for sale -
– Held to maturity 53,914,878 - - - - 29,143,939 16,766,463 9,048 18,483,658 -
Assets pledged as collateral - - 64,262,504 8,588,863 2,791,687 - - 6,837,321 11,978,970 85,745
Other assets - - - - 1,810,933
Property and equipment - - - - - 14,453 - -
Intangible assets - - 3,089,533 385,461 739,780 445,432 2,691,691 331,617 3,632,858 -
Deferred tax assets - - 1,948,612 1,242,819 1,922,441 714,733 2,304,290 1,188,378 2,558,000 3,035,616
Total assets - - 1,407,052
2,400,178 160,233 - 44,115 - 78,437 37,835 1,153,811 -
Financed by: 54,062,207 125,991 - - 387,188 - - 129,079,804 -
Deposits from banks 140,581,151 37,882,538 204,771,972 -
Deposits from customers 36,522,914 35,086,182 18,349,682 -
Current income tax liabilities 66,373
Deferred tax liabilities - - 1 - 496,740 118,020,085 - 6,164 6,246,352 -
Other liabilities - - 110,065,633 27,097,040 27,482,857 70,535,360 28,812,264 12,052,735 88,484,758 66,373
Other borrowed funds - - - 2,969,243
Total liabilities - - 103,954 163,791 309,605 - 41,512 - (481,276) 3,035,616
Equity and reserve 8,537,765 - 132,255 14,321 - 1,072,533 163,757 - 205,664
1,428,505 - 3,042,083 - 1,721,966 456,529
9,966,270 - 2,076,854 3,341,147 1,574,185 - 1,276,693
44,095,937 2,400,178 115,420,780 - 1,160,153 189,627,978 - 12,515,428 6,583,523
54,062,207 2,400,178 25,160,371 31,023,540 15,143,994 30,739,499 5,834,254 102,315,714
140,581,151 30,616,299 5,499,374 18,349,682 26,764,090
7,266,239 36,522,914 204,771,972 4,346,683 129,079,804
35,086,182
37,882,538

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Dec-2017 Staff Invest- GTB Finance GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank GT Bank
ment Trust B.V. Liberia GT Bank UK Kenya Tanzania
In thousands of Nigerian Naira Ghana Sierra Leone Gambia Cote D'Ivoire
Condensed cash flow
Net cash flow: 617,676 133,192,729 43,598,636 3,983,990 (4,097,036) 26,296,648 (663,137) 2,928,411 (5,735,102) 2,949,871
71,223 - (34,103,202) (1,968,921) (728,781) (9,065,433) 2,326,226 (1,479,462) 3,637,780 (1,810,933)
- from operating activities (4,125,097) (479,844) (5,353,772) 2,728,562
- from investing activities (654,799) (133,184,781) (128,309) - (3,690,683) - 631,240 -
- from financing activities 34,100 7,948 5,370,337 1,886,760 (5,305,661) 17,231,215 12,289,074 1,448,949 1,138,938
Increase in cash and cash equivalents - 28,349,278 13,270,847 11,182,901 101,736,739 (357,864) 1,458,398 22,370,681
Cash balance, beginning of year 113,229 - (1,362,197) 16,417,676 8,240,527 968,465 -
Effect of exchange difference - 7,948 237,935 13,795,410 582,302 135,385,630 100,080 -
Cash balance, end of year 33,957,550 6,459,542 3,007,427 23,970,386 1,138,938
147,329

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Condensed results of the consolidated entities of the GT Bank Kenya Group as at 31 December 2017, are as follows:

Profit and loss GT Bank Kenya GT Bank Uganda GT Bank Rwanda
Dec-2017 5,213,476 1,808,624 2,966,278

In thousands of Nigerian Naira (4,051,878) (1,706,893) (2,387,509)
Operating income (217,828) (19,872) (193,043)
Operating expenses 943,770 81,859 385,726
Loan impairment charges (283,132) (71,992) -
Profit before tax 660,638 9,867 385,726
Taxation
Profit after tax

Condensed financial position GT Bank Kenya GT Bank Uganda GT Bank Rwanda
Dec-2017
10,420,208 7,102,845 6,447,685
In thousands of Nigerian Naira 42,549,247 7,501,690 16,258,852
Assets
Cash and cash equivalents 18,483,658 - -
Loans and advances to customers 3,825,678 1,965,870 6,187,422
Investment securities: 1,825,502 2,343,802
– Available for sale 448,452
– Held to maturity 10,496,401 - -
Other assets 894,507 1,362,668
Investment in subsidiaries 569,850 300,825
Property and equipment 235,947 332,945 434,314
Intangible assets 888,761 -
Deferred tax assets 89,300,998 18,541,388
Total assets 33,034,743

Financed by: 5,365,203 880,613 536
Deposits from banks 48,508,848 13,009,271 26,925,467
Deposits from customers
Deferred tax liabilities - - 205,664
Other liabilities 1,534,770 244,964 580,242
Other borrowed funds 6,588,177
Total liabilities 61,996,998 - -
Equity and reserve 27,304,000 14,134,848 27,711,909
89,300,998
4,406,540 5,322,834
18,541,388 33,034,743

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OTHER NOTES TO THE FINANCIAL STATEMENTS

31. Property and equipment Leasehold Land Furniture & Motor Aircraft Capital Total
(a) Group improvement equipment vehicle work-in
and buildings1 - progress2 183,754,344
Cost 1,301,183
28,350,669
In thousands of Nigerian Naira (2,819,748)
-
Balance at 1 January 2018 55,636,100 13,963,300 76,830,826 10,688,278 12,603,126 14,032,714
Exchange difference 328,105 24,140 709,025 102,199 - 137,714 210,586,448
Additions 217,859
Disposals/Reclass 4,126,662 - 12,626,130 2,744,107 199,726 8,436,185 165,561,022
Transfers (31,907) 121,758 (1,154,877) (1,243,549) - (389,415) 726,038
Balance at 31 December 2018 - (3,721,914)
2,448,168 14,327,057 1,151,988 - 18,495,284 19,003,518
62,507,128 90,163,092 12,291,035 12,802,852 (1,536,234)

Balance at 1 January 2017 52,358,464 13,830,084 66,952,716 9,622,070 12,602,476 10,195,212 -
- 21,211 183,754,344
Exchange difference 288,286 (17,260) 422,057 11,744
650 6,074,334
Additions 2,161,128 11,828 9,147,724 1,607,854 - (105,948)
- (2,152,095)
Disposals (575,333) - (301,563) (553,390) 14,032,714
12,603,126
Transfers 1,403,555 138,648 609,892 -

Balance at 31 December 2017 55,636,100 13,963,300 76,830,826 10,688,278

1Of this amount as at December 2018, Leasehold improvement accounts for N14,571,801,000 (23.5%) while Buildings accounts for N47,417,253,000 (76.5%)
2Capital work in progess refers to capital expenditure incurred on items of Property, Plant and Equipment which are however not ready for use and as such are not being depreciated.

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Property and equipment (continued) Leasehold Land Furniture & Motor Aircraft Capital Total
improvement 1,078,923 equipment vehicle 6,695,286 work-in 85,084,346
Group and buildings 57,174,036 7,219,016 - progress
Depreciation 4,088 73,584 - 723,987
12,917,085 174,024 549,401 1,854,001 1,805,380 - 15,327,097
In thousands of Nigerian Naira 9,342,223 (1,188,915) - (2,374,899)
Balance at 1 January 2018 96,914 - (1,154,077) 7,957,686 - - 98,760,531
Exchange difference 1,257,035 65,911,583 8,500,666 -
Charge for the year 2,151,469 6,218,413 - 72,072,967
Disposal 910,517 48,768,107 6,896 4,923,093 427,871
Balance at 31 December 2018 (31,907) (2,867) 342,034 - -
1,479,607 - 13,420,623
15,133,561 171,273 8,367,607 (485,900) 1,772,193 - (837,115)
- (303,712) 7,219,016 - -
Balance at 1 January 2017 11,252,837 57,174,036 - 85,084,346
Exchange difference 81,808 1,078,923 4,333,349 6,695,286
Charge for the year 3,469,262
Disposal 1,629,943 4,302,186
Balance at 31 December 2017 (47,503) 5,907,840

12,917,085

Carrying amounts: 47,373,567 13,070,022 24,251,509 18,495,284 111,825,917
Balance at 31 December 2018 42,719,015 12,884,377 19,656,790 14,032,714 98,669,998
Balance at 31 December 2017

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Property and equipment (continued) Leasehold Land Furniture & Motor Aircraft Capital Total
(b) Parent improvement equipment vehicle work-in
Cost and buildings1 - progress2 155,452,853
23,787,592
In thousands of Nigerian Naira 11,490,298 (1,944,432)
7,639,865 -
Balance at 1 January 2018 47,090,253 13,071,574 63,179,252 8,018,350 12,603,126 -
Additions3 2,900,978 216,300 10,991,043 1,839,680 199,726 177,296,013
Disposals/Reclass - - (1,090,923) (853,509) - (1,854,223)
Transfers 1,194,136 121,758 - 17,275,940 141,411,819
Balance at 31 December 2018 538,329 - 14,780,301
51,185,367 13,409,632 73,617,701 9,004,521 12,802,852 9,257,593 (739,267)
4,186,780 -
Balance at 1 January 2017 44,305,594 12,919,926 54,990,812 7,335,418 12,602,476
650 (4,930) 155,452,853
Additions 1,381,103 13,000 7,985,308 1,213,460 - (1,949,145)
- 11,490,298
Disposals - - (203,809) (530,528)
12,603,126
Transfers 1,403,556 138,648 406,941 -

Balance at 31 December 2017 47,090,253 13,071,574 63,179,252 8,018,350

1Of this amount as at December 2017, Leasehold improvement accounts for N12,032,172,000 (23.5%) while Buildings accounts for N39,153,191,000 (76.5%)
2Capital work in progess refers to capital expenditure incurred on items of Property, Plant and Equipment which are however not ready for use and as such are not being depreciated.
3Included in additions under Capital work in progress is the sum of N605,455,919 (Dec 2017: N1,433,787,000) relating to Lands acquired by the Bank.

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Property and equipment (continued) Leasehold Land Furniture & Motor Aircraft Capital Total
Parent improvement 970,173 equipment vehicle 6,695,286 work-in 70,473,055
Depreciation and buildings 173,754 1,805,380 - progress 12,454,757
47,093,776 5,490,231 (1,932,337)
In thousands of Nigerian Naira 10,223,589 - - - 80,995,475
Balance at 1 January 2018 1,143,927 7,701,465 1,321,491 8,500,666
Charge for the Year 1,452,667 -
Disposal (1,090,920) (841,417)
Balance at 31 December 2018 - 53,704,321 5,970,305 -

11,676,256 -

Balance at 1 January 2017 9,021,001 798,540 40,269,000 4,690,160 4,923,093 - 59,701,794
Charge for the year 1,202,588 171,633 7,028,585 1,264,517 1,772,193 - 11,439,516
Disposal (203,809) (464,446) - (668,255)
Balance at 31 December 2017 - - 5,490,231 - - 70,473,055
10,223,589 970,173 47,093,776 6,695,286

Carrying amounts: 39,509,111 12,265,705 19,913,380 3,034,216 4,302,186 17,275,940 96,300,538
Balance at 31 December 2018 36,866,664 12,101,401 16,085,476 2,528,119 5,907,840 11,490,298 84,979,798
Balance at 31 December 2017

(c) The Bank and Group had capital commitments of N973,990,293 (31 December 2017: N165,155,000) as at the reporting date in respect of authorized and contractual
capital projects.

(d) There were no capitalised borrowing costs related to the acquisition of plant and equipment during the year (2017: nil)

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32. Intangible Assets Goodwill Purchased Software Total

(a) Group 8,675,928 15,748,774 24,424,702
7,009 314,381 321,390
In thousands of Nigerian Naira -
3,733,759 3,733,759
Cost 8,682,937 19,796,914 28,479,851
Balance at 1 January 2018
Exchange translation differences
Additions
Balance at 31 December 2018

Balance at 1 January 2017 8,672,465 12,674,080 21,346,545
Exchange translation differences 3,463 222,335 225,798
Additions -
Disposals - 2,863,251 2,863,251
Balance at 31 December 2017 (10,892) (10,892)
8,675,928
Amortization and impairment losses 15,748,774 24,424,702
Balance at 1 January 2018 -
Exchange translation differences - 9,589,748 9,589,748
Amortization for the year - 185,303 185,303
Balance at 31 December 2018 -
2,302,179 2,302,179
12,077,230 12,077,230

Balance at 1 January 2017 - 7,487,639 7,487,639
Exchange translation differences - 149,927 149,927
Amortization for the year - 1,963,074 1,963,074
Disposals - (10,892) (10,892)
Balance at 31 December 2017 - 9,589,748 9,589,748

Carrying amounts: 8,682,937 7,719,684 16,402,621
Balance at 31 December 2018 8,675,928 6,159,026 14,834,954
Balance at 31 December 2017

Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have
occurred. There was no impairment identified in the year ended December 2018 (2017: nil).

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OTHER NOTES TO THE FINANCIAL STATEMENTS Purchased Software

(b) Parent 11,593,688
2,934,888
In thousands of Nigerian Naira 14,528,576
Cost
Balance at 1 January 2018 8,867,445
Additions 2,726,244
Balance at 31 December 2018 11,593,689

Balance at 1 January 2017 7,092,393
Additions 1,800,577
Balance at 31 December 2017 8,892,970

Amortization and impairment losses 5,489,484
Balance at 1 January 2018 1,602,909
Amortization for the year 7,092,393
Balance at 31 December 2018
5,635,606
Balance at 1 January 2017 4,501,296
Amortization for the year
Balance at 31 December 2017

Carrying amounts:
Balance at 31 December 2018
Balance at 31 December 2017

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(c) Impairment testing for cash-generating units containing Goodwill

For the purpose of impairment testing, goodwill acquired through business combinations is allocated to each of the
cash-generating units or groups of cash-generating units that is expected to benefit from the synergies of the combina-
tion.

Goodwill is allocated to the Cash Generating Units (CGUs) as shown below: Dec-18 Dec -17

In thousands of Nigerian Naira 35,699 33,422
Cash Generating Units 6,906 6,177
Rest of West Africa:
- Corporate Banking 15,326 11,323
- Commercial Banking
5,314,976 5,660,796
- Retail Banking 1,028,198 1,046,282
East Africa: 2,281,831 1,917,928
- Corporate Banking 8,682,936 8,675,928
- Commercial Banking
- Retail Banking

No impairment loss on goodwill was recognised during is based on the Group’s medium to long term perspective
the year ended 31 December 2018 (31 December 2017: with respect to the operations of these units.
nil).
Valuation Assumptions and Other Disclosures
The recoverable amounts for the CGUs have been de-
termined based on value-in-use calculations, using cash For each of the CGUs to which the goodwill was allocat-
flow projections based on financial budgets approved by ed, the key assumptions used in Value-in-use calculations
senior management covering a five-year period and ap- are as follows:
propriate discount rates.
The recoverable amounts of the East Africa region for
Cash Flow Forecasts which goodwill were allocated have been based on their
value in use which were determined by discounting the
The cash flow projections are based on future cash flows projected cash flows generated by the segments in the re-
and the 5-year business plan appropriately approved by gion with the weighted discount rate of 12.48% derived
senior management. Cash flows to perpetuity were es- using CAPM approach. It would require over N326million
timated using a 10-year average growth of GDP in the change in the recoverable amount of the most vulnerable
countries where the subsidiaries operate; 4.3 per cent CGU (East Africa – Commercial) before goodwill allocat-
and 6.2 per cent for CGUs in West Africa and East Afri- ed to the identified CGU can be assumed impaired. 189
ca regions respectively. These constant growth rates are basis point increase in the discount rate will make the re-
based on the long term forecast of GTBank’s growth in coverable amount of the East Africa region Commercial
the countries in which the CGU’s operate centred on past segment equal to its carrying amount.
performance, current industry trend and management’s
expectations of market development. The forecast period

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OTHER NOTES TO THE FINANCIAL STATEMENTS

2018-Key Assumptions Rest of West Africa East Africa

Revenue Growth Rate (%) Corporate Commercial Retail Corporate Commercial Retail
Operating Income Growth Rate (%) 13.4%
Other Operating Costs (N'Million) 55.6% 56.6% 57.1% 11.1% 11.9% 17.1%
Capital Expenditure(N’Million) 2,922
Recoverable Amount (N’Million) 58.6% 59.1% 60.6% 15.7% 16.9%
Long Term Growth Rate (%)
Discount Rate (%) 70,351 13,610 30,203 6,805 1,317

8,170 1,580 3,507 1,227 237 527

127,743 24,712 54,821 20,375 3,942 8,747
4% - 5% 4% - 5% 4% - 5% 6% - 7% 6% - 7% 6% - 7%

22.02% 22.02% 22.02% 12.48% 12.48% 12.48%

2017-Key Assumptions Rest of West Africa East Africa
Commercial
Revenue Growth Rate (%) Corporate Commercial Retail Corporate 16.56% Retail
Operating Income Growth Rate (%) 16.06% 14.85% 18.06%
Other Operating Costs (N'Million) 22.17% 23.17% 23.67% 14.35% 1,228 15.85%
Capital Expenditure(N’Million) 6,645
Recoverable Amount (N’Million) 19.83% 20.33% 21.83% 2,251
Long Term Growth Rate (%)
Discount Rate (%) 19,577 3,618 6,633 156

2,335 432 791 462 85 8,423
6% - 7%
57,827 10,688 19,592 24,862 4,595
4% - 5% 4% - 5% 4% - 5% 6% - 7% 6% - 7% 15.86%

22.55% 22.55% 22.55% 15.86% 15.86%

The key assumptions described above may change as economic and market conditions change. The Group estimates that
reasonably possible changes in these assumptions are not expected to cause the recoverable amount of the subsidiaries
(from which the goodwill arose) to decline below their carrying amount.

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OTHER NOTES TO THE FINANCIAL STATEMENTS

33 Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

Group
Deferred tax assets

In thousands of Nigerian Naira Dec-2018 Dec-2017

Property and equipment, and software Assets Liabilities Net Assets Liabilities Net
Net deferred tax assets/(liabilities)
2,169,819 - 2,169,819 1,666,990 - 1,666,990

2,169,819 - 2,169,819 1,666,990 - 1,666,990

Deferred tax assets: Dec-2018 Dec-2017
-Deferred tax assets to be recovered after 2,169,819 1,666,990
more than 12 months
Dec-2018 Dec-2017
Group
Deferred tax liabilities Assets Liabilities Net Assets Liabilities Net
-
In thousands of Nigerian Naira - 14,153,584 14,153,584 - 10,889,409 10,889,409

Property and equipment, and software 874,103 - (874,103) 5,359,705 1,355,995 1,355,995
Fair value reserves
Allowances for loan losses 1,553,797 - (1,553,797) - (5,359,705)
Defined benefit obligation/Actuarial Loss
Revaluation gain and Other assets 1,069,948 - (1,069,948) 641,268 - (641,268)
Foreign currency translation difference - 7,086,332 7,086,332
Net deferred tax (assets)/liabilities 2,869,886 - (2,869,886) - 4,745,462 4,745,462
24,077,198 18,076,225
--- 6,000,973

6,367,734 14,153,584 7,785,850

Deferred tax assets: Dec-2018 Dec-2017
6,367,734 6,000,973
-Deferred tax assets to be recovered within 12 months
1,556,894 13,187,789
Deferred tax liabilities: 12,596,690 10,889,409

-Deferred tax liabilities to be recovered within 12
months

-Deferred tax liabilities to be recovered after more than
12 months

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Parent Dec-2018 Dec-2017
Deferred Tax Liabilities Liabilities
Assets Liabilities Net Assets Net
In thousands of Nigerian Naira -
- 13,419,627 13,419,627 - 10,373,412 10,373,412
Property and equipment, and software 1,355,995 1,355,995
Fair value reserves 874,103 - (874,103) 5,359,705 - (5,359,705)
Allowances for loan losses 641,268 - (641,268)
Defined benefit obligation/Actuarial Loss 1,553,797 - (1,553,797) - 7,086,332 7,086,332
Revaluation gain and Other assets
Net deferred tax (assets)/liabilities 1,069,948 - (1,069,948) 6,000,973 18,815,739 12,814,766

2,033,325 - (2,033,325)

5,531,173 13,419,627 7,888,454

Deferred tax assets: Dec-2018 Dec-2017
5,531,173 6,000,973
-Deferred tax assets to be recovered within 12 1,476,159 8,442,327
months 11,943,468 10,373,412

Deferred tax liabilities

-Deferred tax liabilities to be recovered within 12
months

-Deferred tax liabilities to be recovered after more
than 12 months

Movements in deferred tax assets during the year

Group
Dec-2018

In thousands of Nigerian Naira

Property and Fair value Allowances Mark to Defined Revaluation Foreign Total
equipment, and reserves for loan market loss benefit gain and currency
losses on valuation obligation translation
software of securities Other assets difference

Balance at 1 January 1,666,990 - - -- - - 1,666,990
2018
502,829 - - -- - - 502,829
Recognised in Profit
or loss 2,169,819 - - -- - - 2,169,819

Balance at 31
December 2018

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Movements in deferred tax liabilities during the year


Group
Dec-2018

In thousands of Nigerian Naira

Property Fair value Allowances Mark to Defined Revaluation Foreign Total
and reserves for loan market loss benefit gain and currency
losses on valuation obligation translation
equipment, of securities Other assets difference
and software

Balance at 1 January 10,889,410 1,355,995 (5,359,705) - (641,268) 7,086,332 4,745,461 18,076,225
2018 -- (1,984,517) (9,485,517) (10,814,868)

Exchange Difference (86,481) 648,860 92,787

Recognised in Profit 3,350,656 (775,326) 3,713,121 - (357,002) (7,971,701) 1,230,534 (809,718)
or loss

Other comprehensive - (2,103,633) - - (71,678) - 3,509,522 1,334,211
Income

Balance at 31 14,153,585 (874,104) (1,553,797) - (1,069,948) (2,869,886) - 7,785,850
December 2018

Movements in deferred tax assets during the year

Group
Dec-2017

In thousands of Nigerian Naira

Property and Fair value Allowances Mark to Defined Revaluation Foreign Total
equipment, and reserves for loan market loss benefit gain and currency
losses on valuation obligation translation
software of securities Other assets difference
-
Balance at 1 January 592,623 255,012 730,792 - - - 1,578,427
2017 -
-
Recognised in Profit 1,074,367 - (730,792) - - - 343,575
or loss -
-
Other comprehensive - (255,012) - - - - (255,012)
Income

Balance at 31 1,666,990 -- - - 1,666,990
December 2017

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Movements in deferred tax liabilities during the year

Group
Dec-2017

In thousands of Nigerian Naira

Property and Fair value Allowances Mark to Defined Revaluation Foreign Total
equipment, reserves for loan market loss benefit gain and currency 17,641,384
losses on valuation obligation translation (2,423,906)
and software of securities Other assets difference
(983,009)
Balance at 11,020,971 (1,159,001) (17,408,177) - (125,966) 20,149,416 5,164,141 3,841,756
1 January 2017 18,076,225

Exchange (86,481) 648,860 92,787 -- (3,473,133) 394,061
Difference

Recognised in Profit (45,080) (842,809) 11,955,685 - (767,005) (9,589,951) (1,693,849)
or loss

Other comprehensive - 2,708,945 - - 251,703 - 881,108
Income

Balance at 31 10,889,410 1,355,995 (5,359,705) - (641,268) 7,086,332 4,745,461
December 2017

Parent
Dec-2018

In thousands of Nigerian Naira

Property and Fair value Allowances Mark to Defined Revaluation Foreign Total
equipment, and reserves for loan market loss benefit gain and currency
losses on valuation obligation translation
software of securities Other assets difference

Balance at 1 January 10,373,412 1,355,995 (5,359,705) - (641,268) 7,086,332 - 12,814,766
2018 (796,848) - (796,848)

Exchange Difference --- --

Recognised in Profit 3,046,216 - 3,805,908 - (357,002) (8,322,809) - (1,827,687)
or loss

Other comprehensive - (2,230,098) - - (71,678) - - (2,301,776)
Income

Balance at 31 13,419,628 (874,103) (1,553,797) - (1,069,948) (2,033,325) - 7,888,455
December 2018

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OTHER NOTES TO THE FINANCIAL STATEMENTS

Parent
Dec-2017

In thousands of Nigerian Naira

Property and Fair value Allowances Mark to Defined Revaluation Foreign Total
equipment, reserves for loan market benefit gain and currency
losses loss on obligation translation
and software valuation of Other assets difference
securities (125,966)

Balance at 1 January 10,559,043 (1,227,618) (17,408,177) - (767,005) 20,149,417 - 11,946,699
2017
251,703
Recognised in Profit (185,631) - 12,048,472 - (13,063,085) - (1,967,249)
or loss (641,268)

Other comprehensive - 2,583,613 -- - - 2,835,316
Income

Balance at 31 10,373,412 1,355,995 (5,359,705) - 7,086,332 - 12,814,766
December 2017

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OTHER NOTES TO THE FINANCIAL STATEMENTS

34 Restricted deposits and other assets Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira 8,439,161 7,398,961 8,439,161 7,398,961
Repossessed collaterals 24,415,996 20,819,575 12,146,851 10,786,689
Prepayments (See note 34(ii) below) 20,885,923 6,749,165 20,885,923 6,749,165
Accounts Receivable(iv) 13,731,769 19,228,807 13,731,769 19,228,807
Foreign Banks - Cash collateral
Restricted deposits with central banks (See note 34(i) 416,107,467 374,877,033 414,667,717 373,491,691
below) 14,406,074 6,341,840 14,406,074 6,341,840
Contribution to AGSMEIS (See note 34(iii) below)
Recognised assets for defined benefit obligations 11,012,687 9,658,362 11,012,687 9,658,362
(See note 40) 508,999,077 445,073,743 495,290,182 433,655,515

Impairment on other assets (See note 34(v) below) (320,375) (126,846) (320,375) (126,846)
508,678,702 444,946,897 494,969,807 433,528,669

Current 497,666,015 431,674,130 483,957,120 420,255,902
Non-current 11,012,687 13,272,767 11,012,687 13,272,767

(i) Restricted deposits with central banks are not available (iii) This represents contribution to Agri-Business/Small
for use in the Group’s day-to-day operations. The Bank and Medium Enterprises Investment Scheme aimed
had restricted balances of N414,667,717,000 with the at supporting the Federal Government’s effort at
Central Bank of Nigeria (CBN) as at 31 December 2018 promoting agricultural businesses as well as Small and
(December 2017:N373,491,691,000). This balance is Medium Enterprises. It is an initiative of the Bankers’
CBN cash reserve requirement. The cash reserve ratio Committee in which Banks are required to set aside
represents a mandatory 27.5% (December 2017: 5% of their Profit After Tax for investment in qualified
27.5%) of total Naira deposits made up of 22.5% players. The fund is domiciled with the Central Bank of
regular CRR and 5% Special Intervention Reserve which Nigeria.
should be held with the Central Bank of Nigeria as a
regulatory requirement.
(iv) Balances in account receivables largely relates to
expected inflow into the Bank’s offshore domicilliary
(ii) Included in Prepayments is an amount of account with respect to FCY cash deposited with the
N5,092,389,000 as at 31 December 2018 (December Central Bank of Nigeria.
2017: N4,990,629,000) which relates to prepaid
operating lease rentals on branches leased by the
Bank.

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OTHER NOTES TO THE FINANCIAL STATEMENTS

(v) Movement in impairment of other financial assets:

In thousands of Nigerian Naira Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
305,556 126,846 305,556
Opening Balance at 1 January 2018 126,846 106,539
- -
Additional impairment on initial application of IFRS 9 106,539 - 86,990 -

Charge for the year 86,990 (178,710) - (178,710)

Reclassification1 - 126,846 320,375 126,846

Closing Balance 320,375

1This relates to provision on pending cases that the bank was involved in. This was reclassified to Other Liabilities (Note 39).

34b. Assets of disposal group classified as held for sale Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira
Investment in subsidiaries - - 3,220 3,220
Other assets1
Total assets of disposal group - - 935,725 847,600

- - 938,945 850,820

Liabilities of disposal group classified as held for sale

Other borrowed funds1 - - 935,725 847,600
847,600
Total liabilities of disposal group - - 935,725

1This relates to $2.6million loan given by GTB Finance BV to the Parent which was re-invested into GTB Finance BV. These balances were eliminated on consolidation.

Net assets of disposal group - - 3,220 3,220

The investment is available for immediate sale in its present condition and its sale is highly probable. The management is
committed to the disposal and there is an active programme to locate a buyer and complete the disposal.

35. Deposits from banks Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira
Money market deposits 4,640,988 6,419,514 721,071 -
Other deposits from banks
78,162,059 79,011,000 14,858 42,360

82,803,047 85,430,514 735,929 42,360

Current 82,803,047 85,430,514 735,929 42,360
Non-current - - - -

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OTHER NOTES TO THE FINANCIAL STATEMENTS

36. Deposits from customers Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira
Retail customers: 171,715,702 160,211,639 122,363,332 118,973,888
Term deposits 358,612,519 378,641,048 262,896,491 278,205,508
Current deposits 571,714,465 479,772,792 475,052,168 398,163,682
Savings
Corporate customers: 195,263,989 204,719,751 160,007,356 153,045,770
Term deposits 976,596,468 838,702,403 845,496,825 749,172,099
Current deposits 2,273,903,143 2,062,047,633 1,865,816,172 1,697,560,947

Current 2,265,812,606 2,028,914,996 1,865,760,385 1,697,556,864
Non-current 8,090,537 33,132,637 55,787 4,083

37. Financial liabilities held for trading Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira
Debt securities at amortized cost: - 92,131,923 - 92,131,923
Eurobond debt security - 92,131,923 - 92,131,923

Current - 92,131,923 - 92,131,923
Non-current -- - -

38. Debt securities issued Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira
Bond short positions 107,560 - 107,560 -
Treasury bills short positions 2,647,469
1,757,859 2,647,469 1,757,859 2,647,469

1,865,419 2,647,469 1,865,419

Current 1,865,419 2,647,469 1,865,419 2,647,469

Non-current -- - -

Debt securities of N 92,131,923,000 (USD 278,210,000) which represents the outstanding portion of USD400,000,000
(principal) issued in November 2013 for a period of 5 years at 6% per annum payable semi annually matured in November
2018. The Bank was able to fund the repayment without issuing additional notes.

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OTHER NOTES TO THE FINANCIAL STATEMENTS

39. Other liabilities Group Group Parent Parent
Dec-2018 Dec-2017 Dec-2018 Dec-2017
In thousands of Nigerian Naira 9,869,968 8,537,765
Cash settled share based payment liability (Note 39(d)) - -
Liability for defined contribution obligations (Note 39(a)) 4,316 58,629 33 -
Deferred income on financial guarantee contracts 140,403 138,636 31,583 37,337
Litigation Claims Provision (Note 39(e)) 178,710 91,720 178,710
Certified cheques 91,720 10,482,214 5,094,684 7,660,447
Lease obligation (Note 39(b)) 8,745,128 262,599 262,599
Customers' deposit for foreign trade (Note 39(c)) 19,938,543 - 19,828,369
Customers' escrow balances - 156,588,741 13,992,994 156,588,741
Account Payables 14,429,129 16,950,911 64,119,085 14,943,099
Creditors and agency services 64,119,085 9,295,176 26,358,478 1,835,197
Customers deposit for shares of other Corporates 27,861,859 1,684,905 1,684,905
Impairment on Contingents (Note 39(f)) 2,352,860 -
7,027,157 - 1,057,854 203,019,404
1,057,854 224,116,829 6,713,128
7,100,889 119,812,419
140,447,508

Current 119,089,414 209,134,517 108,820,874 197,609,464
Non-current 21,358,094 14,982,312 10,991,545 5,409,940

(a) The Bank and its employees each contribute a minimum of 10% and 8% respectively of basic salary, housing and
transport allowance to each employee’s retirement savings account maintained with their nominated pension fund admin-
istrators.

(b) The lease obligation relates to an Aircraft held under a finance lease arrangement. The net carrying amount of the
Aircraft, included within property, plant and equipment is N4,302,180,000 (December 2017: N5,907,835,000).
The lease agreement includes fixed lease payments and a purchase option at the end of the 10 year lease term. The agree-
ment is non-cancellable but does not contain any further restrictions. No contingent rents were recognised as an expense
in the year (Dec 2017:Nil)

#EnrichingLives Guaranty Trust Bank Plc | 2018 Annual Report | 299